Photo: paymentsjournal.com

The new customer survey by the fintech holding, Robocash Group shows that non-bank financial companies (NBFC) and microfinance institutions (MFI) are the first providers of credit for almost every third individual in Asia (31 per cent).

Although the primary source of credit is still held by banks, alternative lending is also gaining traction.

For example, the survey found that bank loans first were obtained by 41 per cent of respondents in India, Philippines, Indonesia and Vietnam. On the other hand, 31 per cent of responses account for NBFCs and MFIs.

Of the four countries, Philippines is the one that stands out the most. In Indonesia, the first providers of financing are NBFCs and MFIs, accounting for 29 per cent of local respondents. On the other hand, for India and Vietnam, the figures are 26 per cent and 25 per cent respectively each. The highest figure is recorded by Philippines at 41 per cent, whose share is also higher than banks by 12 per cent.

The survey suggests that geographical fragmentation is the primary reason causing bank branches to be less accessible compared to neighbouring countries, hence the difference in the figures. Due to remote banking still being underdeveloped, the demand for alternative payment and credit solutions has been increased.

The importance of remote channels for customers when they apply for financing is also highlighted by the survey. For example, in the Philippines, 27.8 per cent of people personally visit a lender’s office for loan whereas 36.5 per cent obtained their first loan through digital means. In Indonesia, respondents are divided into 46 per cent and 42 per cent respectively regarding personal visit and digital means. In Vietnam, 23 per cent visited offline branches whereas 62 per cent remotely applied for first credit. In India, 31 per cent opts for traditional means for getting loans whereas 27 per cent relies on digital means.

In light of this, the survey also states that there might be inaccuracy because some respondents have forgotten what means they used to get their first credit. The rapid development of fintech services and electronic payments may narrow the gap in the region.

Analysts of Robocash Group remarked regarding the survey findings: “With the rapidly growing digital adoption, people are increasingly looking for simple solutions that would meet their needs quickly. In this sense, the results have confirmed the importance of financial technologies for people in Asia. Remarkably, at least more than one-third of respondents (37%) stated confidently that in 2019, they used fintech products more often than a year before.”

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
You May Also Like

PAP and PAY

Dr Wong Wee Nam / In 1996, when the formula for the…

Singapore goes back to Phase 2 (Heightened Alert), no dine-ins at F&B establishments and maximum 2 pax group size

In response to growing COVID-19 clusters detected at KTV lounges or nightclubs…

失智妇商场内遭儿子怒喝 多人及时援助温暖人心

照顾失智亲人需要给予耐心和关怀,但往往也可能为看护的亲属带来压力。 网民Scarlett Chong昨日(8月12日)在脸书发帖,分享在商场遇到一名男子相信是压制不住情绪,当众呵责患失智的老母亲。但附近的民众并没有投以有色眼光,反而安抚男子情绪,也安慰和给予失智妇女照料。不相识的民众,能发挥同理心同时给予失智患者和亲属援助,令网民倍感温馨。 Scarlett Chong指出,这名男子在JEM购物中心的残疾人专用厕所,对着老年痴呆的母亲大声怒喝,引起他人注意。 幸运的是,当时有几名在厕所附近的人们听到了怒喝声,便主动协助该名生气的成年男子及老母亲。 她指出,Don Don Donki日本餐厅的员工呼叫了保安人员。其中一名保安人员Mariama在抵达现场后,虽然有语言障碍,但是仍挽住了老妇的手臂并拥抱老妇,以进行安抚。另一名Jem Landlease建筑管理部门人员,David Tan也用福建话跟老妇讲笑话,让对方平静下来。 一时尚品牌Love…